Intel (INTC) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $16.513B, up 20.9% YoY; non-GAAP gross margin was 44.1% and non-GAAP EPS was $0.52, all above outlook.

• DCAI and Foundry growth offset weaker client demand; server CPU demand strengthened with AI investment, while PC demand faced memory shortages.

• YTD net loss attributable to shareholders was $11.4B, including a $12.6B escrowed-share fair-value loss and $3.9B goodwill impairment.

• Foundry yields, cycle times and costs improved, though capacity expansion and process-node investment remain substantial.

• Long-term opportunities cited across CPUs, purpose-built silicon, advanced packaging, foundry, edge AI and physical AI.

Financial highlights

• Q3 GAAP gross profit was $7.1B versus $5.2B; operating income was $2.522B versus $683M, while net income attributable to shareholders was $3.320B versus $4.063B YoY.

• Q3 non-GAAP EPS was $0.52 versus $0.38 guided; GAAP diluted EPS was $0.60 versus $0.90 YoY.

• Q3 operating cash flow was $5.1B and adjusted free cash flow was $1.639B; quarter-end cash and short-term investments were $54.0B.

• YTD operating cash flow was $13.2B, capital expenditures were $10.2B, and diluted EPS was $(2.22).

Outlook and guidance

• Q4 revenue guidance is $15.0B–$16.0B; at the $15.5B midpoint, non-GAAP gross margin is 38%, tax rate 11% and EPS $0.25.

• Q4 guidance includes an estimated $300M revenue and 200 bps gross-margin impact from the Fab 28 incident, primarily affecting 10nm server products.

• Q4 DCAI revenue is expected to grow mid-teens sequentially; CCPG revenue is expected to decline more than 20% sequentially.

• Server CPU units are expected to grow >30% in 2026 and 2027; PC unit TAM is forecast to decline ~12% in 2026 and ~10% in 2027.

• 2026 gross CapEx remains on track at $20B; 2027 spending is expected to rise strongly, with negative free cash flow anticipated.